RKUS Drops 17%: Q1 Misses, Q2 View Light, on Carrier Delays, China

By Tiernan Ray

Shares of wireless networking equipment maker Ruckus Wireless (RKUS) are down $3.20, or 17%, at $15.80, after the company this afternoon reportedQ1 revenue and earnings per share that missed analysts’ estimates, and forecast this quarter’s results lower as well, citing weakness in its market in China and delays by some North American carriers to whom it sells.

Revenue in the three months ended in March rose 27%, year over year, to $57 million, yielding EPS of 3 cents a share, excluding some costs.

Analysts had been modeling $63 million and 4 cents per share.

For the current quarter, Ruckus sees revenue in a range of $61 million to $64 million, and EPS of 3 cents to 4 cents. The Street has been modeling, on average, $67 million and 4 cents.

Ruckus CEO Selina Lo remarked that although the company reached a number of important milestones” in the quarter, nevertheless “we are disappointed that our Q1 revenue came in below our guidance.”

Said Lo, there was no “material change in the competitive environment,” but rather “delayed deployments by several service provider customers in the Americas, as well as challenging market conditions in China.”

Ruckus competes with other dedicated wireless outfits such as Aruba Networks (ARUN), as well as larger networking firms such as Cisco Systems (CSCO).

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.